Real Estate Operations

6 Months Ended

Jun. 30, 2016

Real Estate [Abstract]

Real Estate Disclosure [Text Block]

Note - 5 Real Estate Operations

In connection with the Company’s program to purchase residential properties for purposes of renovation or construction and resale, as of June 30, 2016, the Company had purchased for an aggregate original price of approximately $29.9 million, and continued to own, through two indirect wholly-owned subsidiaries, twelve residential properties in Miami-Dade County, Florida and one residential property in East Hampton, New York.

The company incurred $57,787 in real estate expenses for the six months ended June 30, 2016, and $31,695 for the six months ended June 30, 2015, consisting of utilities, maintenance, insurance, taxes and other operating costs and expenses with respect to properties owned.

Real estate inventory is recorded at cost. The cost of residential property includes the purchase price of the property, legal fees and other acquisition costs (e.g. recording, title search, survey, lien and permit searches, and inspection costs). Costs directly related to planning, developing and constructing a property are capitalized and classified as real estate inventory in the consolidated balance sheets. Capitalized development costs include interest, property taxes, insurance, and other direct project costs incurred during the period of development.

After acquisition, real estate inventory is analyzed periodically for changes in fair values and any subsequent write down is charged to operating expenses. The Company did not have such a write down during the six months ended June 30, 2016 and 2015.